Correlation Between PT Homeco and Repower Asia
Can any of the company-specific risk be diversified away by investing in both PT Homeco and Repower Asia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PT Homeco and Repower Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Homeco Victoria and Repower Asia Indonesia, you can compare the effects of market volatilities on PT Homeco and Repower Asia and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PT Homeco with a short position of Repower Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Homeco and Repower Asia.
Diversification Opportunities for PT Homeco and Repower Asia
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LIVE and Repower is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding PT Homeco Victoria and Repower Asia Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repower Asia Indonesia and PT Homeco is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PT Homeco Victoria are associated (or correlated) with Repower Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repower Asia Indonesia has no effect on the direction of PT Homeco i.e., PT Homeco and Repower Asia go up and down completely randomly.
Pair Corralation between PT Homeco and Repower Asia
Assuming the 90 days trading horizon PT Homeco Victoria is expected to under-perform the Repower Asia. But the stock apears to be less risky and, when comparing its historical volatility, PT Homeco Victoria is 1.81 times less risky than Repower Asia. The stock trades about -0.26 of its potential returns per unit of risk. The Repower Asia Indonesia is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 800.00 in Repower Asia Indonesia on September 2, 2024 and sell it today you would lose (100.00) from holding Repower Asia Indonesia or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Homeco Victoria vs. Repower Asia Indonesia
Performance |
| Timeline |
| PT Homeco Victoria |
| Repower Asia Indonesia |
PT Homeco and Repower Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Homeco and Repower Asia
The main advantage of trading using opposite PT Homeco and Repower Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Homeco position performs unexpectedly, Repower Asia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Repower Asia will offset losses from the drop in Repower Asia's long position.| PT Homeco vs. Surya Citra Media | PT Homeco vs. Ciptadana Asset Management | PT Homeco vs. Smartfren Telecom Tbk | PT Homeco vs. Indointernet Tbk PT |
| Repower Asia vs. Nanotech Indonesia Global | Repower Asia vs. PT Homeco Victoria | Repower Asia vs. Era Media Sejahtera | Repower Asia vs. Intermedia Capital Tbk |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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